When I make new files with either .hbs or .handlebars extensions, they don’t seem to get proper highlighting. With this, I mean that things in brackets get highlighted with blue, but none of the HTML is properly highlighted like it would be in .html files which makes the editing quite a bit harder.

Is there any way to change this locally or get it changed globally or am I doing something really wrong here?

Yeah this looks like a bug in our codemirror instance. The syntax mode is correctly identified as handlebars but for some reason not highlighting correctly. We’ll look into this as soon as we can. Thanks